Both clubs are keen to snap up the up-and-coming Royal on a free.
Liverpool and Newcastle United are set to go head to head this summer for Reading defender Alex Pearce, according to reports in the Shields Gazette.
The Republic of Ireland international was forced to endure a difficult last campaign with the Royals after refusing to put pen to paper on the new deal that the club had offered him.
And with the 24-year-old out of contract on June 30, Reading decided to barely play the centre back last season, with Pearce leaving the Madejski stadium this summer in any case.
As a result, Pearce featured in just 19 Premier League fixtures for Reading, while overall the player only played in 21 matches in all competitions as the struggling club were relegated from the top flight to the Championship.
Now both Liverpool and Newcastle are understood to be keen to snap up Pearce on a free transfer when the summer window finally reopens for business on July 1.